Economic impact of AI: Article series for business leaders

As GenAI increasingly anchors itself at the nexus of technological advancement and economic growth, it gives rise to opportunities and challenges. On one hand, there is an optimistic projection that GenAI could catalyze groundbreaking scientific research and lead to a renaissance of innovation and productivity.

The technology holds the promise to help optimize supply chains, create innovative business models and bring about unforeseen efficiencies that could lead to a quantum leap in economic output and wealth generation.

Conversely, there’s an apprehension that GenAI could introduce economic externalities that are less palatable. The prospect of job displacement due to automation, potential discriminatory biases, threats to national security, and issues related to privacy and copyright are some of the foreseen challenges.

From the broader macroeconomic viewpoint, the stakes are undeniably high in navigating the promise and pitfalls of GenAI. The onus now lies on policymakers, business leaders and stakeholders to help ensure that as we harness the potentials of GenAI, we do so responsibly and ethically. Nurturing the delicate balance between innovation and regulation becomes an art.

The October 2023 EY CEO Outlook Survey shows that 70% of CEO respondents acknowledge that GenAI will challenge them to disrupt their own business model in order to maintain a competitive advantage. Similarly, 70% of CEOs recognize that their organization must act now on GenAI to avoid giving their competitors a strategic advantage. But there is a tension as 68% of CEOs agree that the uncertainty around GenAI makes it challenging to move quickly in developing and implementing an AI strategy.

Recognizing the criticality of this juncture, we are launching a dedicated series of research notes to dissect the economic opportunities and risks presented by GenAI. Through this initiative, we aim to provide an in-depth exploration of the pivotal GenAI themes currently dominating US policy discourse.

We will elucidate on the latest developments and present actionable insights tailored for business leaders, boards of directors, policymakers and other influential stakeholders. As the dawn of the GenAI-driven economic paradigm unfolds, our series seeks to arm decision-makers with the requisite knowledge to better navigate this transformative epoch, helping to ensure a trajectory of informed choices, robust economic resilience and holistic growth.